Bovis sees profits slump


Bovis sees profits slump
A slump in the UK property market has seen profits at Bovis slip dramatically.

The homebuilder reveals it half year results today and confirms profits have fallen 84 per cent over the first six months, in what is described as "the toughest period of trading" the firm has experienced in its time as a public company.

While Bovis made £11.7 million in adjusted profit before tax in the first half of the year, this is down from £58.4 million in the same period last year.

In response Bovis has largely avoided new investments in consented land, reduced production levels and restructured to cut operating costs.

Commenting on the figures David Ritchie, chief executive of Bovis Homes, said: "The group considers that the current difficult trading environment will continue for the foreseeable future with continued poor mortgage liquidity limiting housing market activity.

"Actions continue to be taken to conserve cash and a realistic approach is being taken in respect of achievable net prices for the group's available homes to facilitate delivery of required volumes for the remainder of 2008," he added.

The average sale price of the company's homes has fallen by four per cent over the period. As such Bovis now sells its homes for an average of £196,700.

Earlier this year Bovis confirmed around 400 jobs are to be axed, along with the closure of its eastern regional office, with fewer subcontractors being taken on at its building sites.

Shareholders will receive a dividend of five pence a share, down from the 20 pence generated last year.

In response shares in Bovis fell 2.8 per cent to 416 pence at 08:52 BST this morning.

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